US May CPI Unchanged, Fed Confident in Controlling Inflation

Reported about 1 year ago

The US Consumer Price Index (CPI) remained flat in May, signaling a deceleration in inflation; however, it still stayed above the Federal Reserve's 2% target. Economists had expected a slight increase, but the unexpected flat reading suggests that the Fed may not cut interest rates until September. The core CPI, excluding food and energy, increased by 0.2% in May, lower than the 0.3% rise in April, with a year-over-year increase of 3.4%. Market reactions included a 1.1% increase in the S&P 500, a decline in the 10-year US Treasury yield, and a decrease in the dollar index.

Source: YAHOO

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